How to Finance an HVAC System
Whether you're installing a new heating, ventilation and air conditioning system (HVAC) or replacing an existing system, chances are you'll spend several thousand dollars. For commercial buildings, you'll need to make a large capital investment. The Environmental Protection Agency notes that as much as half the energy used in your home goes toward heating and cooling, so installing the right HVAC system for your building is important.
Shop around for the best HVAC financing deals. Check on home improvement loans, financing through your HVAC installer and special purpose loans from a bank or finance company.
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Things You'll Need
- Personal or business financial information
- Documentation of HVAC system cost
Instructions
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HVAC System Financing
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Gather paperwork to support your ability to repay a loan on your HVAC system. Relevant paperwork will include documentation of your income, debts, and any assets that could be used to secure the HVAC loan, such as savings or investment accounts, or properties that have more equity than the HVAC system's cost.
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Contact the bank that holds your mortgage to determine if you have sufficient equity in your home or business to finance the system with an equity loan. Interest rates for home or business equity loans may be more favorable because the bank has previous experience with you, and it also has a vested interest in retaining and improving the value of your property.
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Ask your HVAC installer if he offers financing. HVAC dealers generally will not finance the systems themselves, but they may have deals with banks or finance companies that offer special financing for HVAC customers, such as the deferred interest and payment promotions offered by CitiFinancial's Thermal Charge program.
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Contact finance companies in your area to see if they offer loans secured against your HVAC system or other property. Be aware that while finance companies may be more willing to lend if your credit is poor, you may pay additional fees and a higher interest rate.
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Search the Internet for special financing deals. Some banks offer financing in areas where they don't have a physical presence, and if you can supply adequate documentation of your ability to repay, they may be willing to offer you a deal.
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Tips & Warnings
Shop around any time you need a loan, especially for large loans such as for your HVAC system. If you have a good credit rating, you may find that banks and finance companies are willing to fight for your business, resulting in lower interest rates and better repayment terms for you.
Be wary of lenders who talk only about monthly payment. Be sure you understand the total amount you're financing, including upfront fees, and fees that may arise if you pay the loan off early. Also understand the loan's interest rate, how the loan is secured and how much you'll pay in total over the loan's lifetime.
